Article by Matt Prewitt: “…Markets have always required some form of protectionist intervention — like intellectual property law — to help foster innovation. In recent years, startups have innovated because of a rich symbiosis with tech giants and their monopoly-seeking investors. Startups are indeed hungry, but their hunger is not to serve consumer needs or the national interest; it is to join the happy ranks of the monopolists. The nature of technological innovation is that competitive markets, without being “managed,” do not inspire it.
Today, this may sound bizarre, heterodox and jarring. But it was once fairly mainstream opinion. In the middle part of the 20th century, many of America’s most celebrated economic minds taught that competitive markets cause technological progress to stagnate. During the neoliberal era that followed, from the 1980s to the 2010s, this idea was largely forgotten and pushed to the margins of politics and academia. But it never lost its kernel of truth…
Where to from here? Both sides of the battered American center must first face their mistakes. This will be painful, not only because their errors have resulted in profound and long-term mis-governance, but also because their blind spots are deeply entangled with old, hard-to-kick ideological habits. The center-left’s sunny techno-utopianism traces its roots back to the rationalism of the French Revolution, via Karl Marx and early 20th-century progressives. The center-right’s fervent market fundamentalism is equally a relic of bygone eras, reflecting the thought of Friedrich Hayek and Milton Friedman — idea-warriors who pitched competitive markets as a cure-all largely to one-up the utopian promises of their techno-optimistic progressive foes. Thus, today, center-right and center-left thinking both feel like artifacts from yesterday’s ideological trenches. A new form of centrism that wants to speak to 2026 would need to thoroughly clear the decks…(More)”
